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All Eyes on Whether the Falling Euro-Dollar Pair Will Test Lower Levels

Market Report

All Eyes on Whether the Falling Euro-Dollar Exchange Rate Will Continue to Drop

Today's Highlights
  1. European Consumer Price Index
  2. Remarks by Federal Reserve Board Member Waller

In the U.S. currency market the previous day, the Canadian dollar fell against the yen. The CAD/JPY pair fell from 112.720 to 112.288.Price action remained within the range of the 20-period moving average (MA) on the hourly chart throughout the session. On the 4-hour chart, prices have stalled near the support level provided by the 75-period MA, while on the daily chart, prices have broken below the 10-period MA—which had previously provided support—and the RSI is currently pulling back after touching the 70 level.

Among European currencies, the euro fell against the U.S. dollar. The EUR/USD pair traded between 1.1803 and 1.1734. It fell from the +3σ to the -2σ levels on the hourly Bollinger Bands.On the 4-hour chart, the RSI has fallen from 72 to 46, and on the daily chart, the pair has plummeted from levels not seen since September of this year. Furthermore, as the pair has continued to test lower levels during today’s Asian session, traders should watch for further weakness in the euro during the European session.

Today’s economic indicators include the Australian Westpac Leading Economic Index at 8:30, Japan’s trade balance at 8:50,4:00 p.m. UK Consumer Price Index, UK Producer Price Index, and UK Retail Price Index; 6:00 p.m. German IFO Business Climate Index; 7:00 p.m. Eurozone Consumer Price Index; 8:00 p.m. UKCBI Business Survey, at 21:00 the U.S. MBA Mortgage Applications Index, at 22:15 remarks by Fed Governor Waller, at 24:30 U.S. weekly crude oil inventories, and at 27:00 the U.S. 20-year Treasury auction.We will be watching closely to see if the falling EUR/USD pair will test lower levels.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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